Shares in Redcape's new $500 million-plus Hotel Property Fund will likely trade at the upper end of its $2 to $2.15 range when it lists on the Australian Securities Exchange next month, according to sources.
The timing of the bookbuild has been accelerated on the back of strong demand, sources said, and will launch tonight after Asian markets ceased trading, and would close tomorrow - a day ahead of schedule.
Retail investors were likely to account for about 20 to 25 per cent of the register, sources said.
It comes after the pub operator received a strong response from retail investors and domestic institutions on its roadshow, which started last week, and prompted the Asian leg to be cut short.
Joint managers JPMorgan and Goldman Sachs are raising about $286m of equity for the landlord, which will own 41 pubs leased to Coles and seven bottleshops, to list on the stock exchange on December 10.
The company would secure 95 per cent of its income from Coles on long leases and would have debt levels of 40 to 50 per cent.
Other drawcards were contracted rental increases of about 4 per cent, with some suggesting the investment was akin to a bond, and the strength of the company's board, led by former Challenger Financial chief executive Michael Tilley.
The trust has an anticipated yield range of 7.4 to 7.9 per cent for the 2015 financial year.
Redcape's IPO plans comes as, ERM Power is moving to raise $75 million from investors today through the issue of 29.5m shares at $2.53 each to buy the remaining 16.7 per cent interest in the Oakey Power Station and to pay debt.